Ellewewa reservoir project was proposed to address the water scarcity problem in Panamure scheme. The reason for water shortage is mainly due to increase in irrigable area owing to the encroachments by new settlers.

Supplying of drinking water for 1000 heads and generation of hydropower (2.59 GWH annually) is also proposed in this project. After paying the compensation for the families are in the project area construction will be commenced. The process of paying compensation is in progress. Preparation of drawing and estimates are in progress.